Truist Securities raised the price target on shares of CACI International Inc. (NYSE:CACI) to $800, up from the prior target of $735, reaffirming its Buy rating on the government services firm. This updated valuation aligns with the highest analyst price objectives currently available for CACI stock, which trades around $655.46, close to its recent 52-week peak of $663.63. Over the past 12 months, the company's stock has delivered impressive returns nearing 55.5%, evidence of widespread investor confidence supported by its financial performance.
The brokerage detailed that revisions to earnings estimates and an upward re-rating multiple contributed to its bullish outlook on CACI, citing the expectation of more rapid growth relative to industry peers. In fiscal terms, the company posted over 10% revenue growth in the previous twelve-month period and held a price-to-earnings ratio of 27.1 based on current earnings forecasts.
Truist underscored several key strengths underpinning its positive stance, including CACI's development of a software-centric solutions framework and a sizable electronic warfare portfolio valued at approximately $2 billion. The firm has also built a strong track record through strategic mergers and acquisitions, reinforcing its competitive position.
Specifically, Truist identified upcoming named program and product expansions, along with potential funding through Other Defense Business Base Appropriations (OBBBA), that could drive low double-digit organic revenue growth in calendar years 2027 and 2028. CACI International primarily serves a diverse range of government clients including defense, intelligence, and civilian federal agencies. The company is noted for executing a strategic business pivot over recent years, now yielding favorable prospects.
On the earnings front, CACI recently exceeded analyst expectations with reported EPS of $6.81 for its second fiscal quarter of 2026, outperforming the $6.48 consensus estimate by just over 5%. However, revenue of $2.2 billion fell short of forecasted $2.27 billion. Despite the top-line miss, market reaction remained positive, reflecting confidence in operational execution.
Complementing Truist’s update, BofA Securities also lifted its price target for CACI to $750 from $670, maintaining its Buy recommendation. The firm attributed this adjustment to CACI’s better than anticipated margin growth and robust free cash flow generation capabilities. BofA also noted the company’s solid fundamentals even amid a deceleration in government contract awards during the quarter.
Overall, CACI’s latest results and forward guidance reinforce its status as a favored player in the government contracting sector, with strong organic growth potential supported by technological innovation, a healthy balance sheet, and disciplined strategic execution.
Truist Securities increased its price target for defense contractor CACI International to $800 from $735 while maintaining a Buy rating, highlighting expected accelerated growth and solid financial metrics. The stock is trading near its 52-week high, underpinned by robust revenue gains, a competitive software framework, and strategic acquisitions. Additionally, BofA Securities raised its price target, reflecting margin expansion and healthy free cash flow despite some revenue headwinds in the latest quarter.
Key Points
- Truist Securities raised CACI International’s price target to $800, reflecting higher growth expectations and a positive financial trajectory.
- CACI’s stock price is near a 52-week high following a 55.45% gain over the past year, showing strong market performance.
- BofA Securities also increased its price target citing margin expansion and strong free cash flow despite some revenue challenges.
- CACI’s offerings in software frameworks and electronic warfare, combined with effective M&A activity, bolster its positioning in the government contract market.
Risks
- CACI reported slightly lower than expected revenue in its recent quarter, indicating potential near-term top-line challenges.
- A slowdown in the government contract award environment could impact future growth and revenue stability.
- CACI’s projected growth depends partially on securing additional funding programs such as OBBBA, which carries uncertainty.